Category: Building Development

What is it like when doing a building development project?

Here’s a more detailed look at what it’s like for different phases of a Building Development Project:

Design with Permit Approval Phase

The design phase is more than just engaging the designer / architect for your building development project. This phase focuses on creating plans from conceptual to detailed plans, specifications, and drawings, often involving surveyors, designers / architects, engineers, and many other specialists. The earlier you can involve these professionals, the better for your project. All should be involved in the early stage of the design phase so that they can discuss and agree on the project goal, the requirements and their priorities, the expected measurable rating of the house, etc. as the design requirements. To facilitate a more efficient team work, modern collaborative design tools that facilitate remote meetings should be used. Their inputs can impact the project design which may have dependencies on each other. These inputs not only affect the outlook, as well as functions and features to the newly built buildings, they can also affect the cost, schedule, quality, and the final value of the buildings significantly.

A design brief should be prepared to align all the specialists in order to kick-start the design phase effectively. You should prepare a design brief that includes listing out the condition of satisfaction and your top key requirements with their priorities. This design brief not only helps in selecting the designer and the specialists who will best suit for your project, you would also know how to accept the deliverables from all these professionals.

Typically, the time for this phase will take 3-9 months.

Once the design is completed, the designer will prepare the set of construction plans and information for the building permit submission to the municipality planning department to obtain the necessary permits and approvals. There are different costs associated with the permit approval submission.

What is it like when doing a building development project?

Here’s a more detailed look at what it’s like for different phases of a Building Development Project:

Procurement w/ Governance Phase
This involves selecting the designer, the builder, the specialists,  contractors, suppliers, etc.

Procurement w/ governance is a strategic approach to managing purchase decisions and supplier relationships, ensuring transparency, reducing risks, and improving efficiency in the procurement process.  Procurement is the process of sourcing, purchasing, and managing the acquisition of goods, services, and works necessary for a building development project.  Governance in procurement refers to the framework of policies, procedures, and systems that ensure that procurement activities are conducted ethically, transparently, and efficiently.  The goal of procurement is to secure the necessary resources at the best possible price, quality, and time, while minimizing risks and ensuring project success.  This phase includes planning purchases, determining specifications, selecting suppliers, negotiating prices, managing contracts, and ensuring timely delivery and quality.  Some of the examples of the procurement w/ governance bidding process, contract management, supplier performance monitoring, delivery acceptance, and the compliance.

The procurement with governance refers to the structured process of acquiring resources (materials, labor, services) while adhering to established policies and procedures to ensure transparency, accountability, and compliance, ultimately optimizing project outcomes and reducing risks. 

What is it like when doing a building development project?

Here’s a more detailed look at what it’s like for different phases of a Building Development Project:

Securing Finance Phase

There are different ways to finance your project.  Some require more transparency and accountability than others.  The interest rates are also different.   Some involve inspections by the lender that can slow down the construction.  There are different types of payment terms as well as draw-down conditions.  There are also structured finance solutions used to pay for the construction and operation of projects, with debt repayment based on the project’s cash flow.  Since obtaining necessary permits and approvals takes time, this may affect the type of financing to be taken for the building development project.  

Regardless of which way to finance the project, it is important to manage the costs with tight monitoring and controlling the cost against the budget that was set.  The budgeting is crucial, as construction costs can be unpredictable and subject to the changes in the inflation, economical, and political situations.  Cashflow management is always the highest priority in managing the project.  

It is also important to allocate a a contingency fund on top of the budget.   A contingency fund will account for around 10% – 20% of the total project cost, to cover unexpected costs or changes during construction, including the inflation, disruption to the supply chain, as well as the sudden change in the national and the international government policies that impact the cross border trade. It’s better to be safe than sorry in these situations, and this can reduce any unnecessary financial strain should the unexpected arise.

What is it like when doing a building development project?

Here’s a more detailed look at what it’s like for different phases of a Building Development Project:

Inception Phase

Any property that you own is a valuable asset. But its inherent worth lies in how you develop it. The right building development will boost the resale value significantly, while uninformed choices will have the opposite effect.  To start a feasibility study, a site and zone analysis is a necessary step to be included.  The feasibility study allows developers to assess whether the proposed project is financially fruitful, compliant with regulations, and can be built within the assigned time frame. 

A site analysis can show how to  best use the property lot and how to develop it for boosted resale value.  It can help to:

• Understand the merits and demerits before investing in a building development
• Assess the scope of developmental avenues for your property
• Identify potential constraints that might hamper the development
• Evaluate the infrastructural characteristics of the property
• Understand the upcoming development plans around the site
• Gather information to submit your zoning request

For optimal results, in-depth site analysis and zoning feasibility is recommended at the start of the design phase.

Before going into the design phase, or even discussing with the finance providers, a clear vision of the newly developed buildings should be established.  For inspiration, tour communities  / open houses / and trade fares, read magazines, and browse online directories to find examples of the buildings that catch your eyes.  Collecting photos along the way will help the communications with the stakeholders, designer, specialists, and the trades people down the path.  It is also important to categorize the specifics into “must have’s”, “nice to have’s”, and “non-negotiables”. It is important to talk to the family stakeholders to make sure the proposed development meets everyone’s expectations.

What is it like when doing a building development project?

Building development projects with financing involve a complex process, from securing loans and managing costs to initial planning and design to construction and completion, requiring meticulous coordination, communication, navigating regulations and potential delays, and resource management, all while balancing the needs of lenders and stakeholders, to ensure a successful outcome. 

Here’s a more detailed look at what it’s like for different phases of a Building Development Project: